How to Maintain a Strategy in the Decline Stage

by Miranda Brookins, Demand Media

The product life cycle includes stages such as growth, maturity and decline. In each stage, businesses have to adjust their strategies to suit the needs of the market and the business environment. In the decline stage, businesses notice that sales begin to drop off for a product or service -- which may have once been popular -- due to low demand. There are several ways a business can create and maintain a strategy during the decline stage.

Step 1

Examine the product you currently offer and come up with different ways consumers can use it. To get ideas, you can survey customers to determine if they use your product in ways that other consumers may find beneficial. For example, when Clorox Company wanted to increase sales for its Hidden Valley Ranch salad dressing, it began marketing the product as more than just a salad dressing; the company encouraged customers to use it to dip their pizza, vegetables and chicken wings.

Step 2

Add new features to your existing product or service. By adding new features you can potentially get former customers interested in your product again, or attract a market of new consumers. Adding new features can be risky if the costs to add the features are high and you do not see a return on your investment.

Reduce your marketing expenses by only advertising the product to individuals or companies who have purchased the product in the past, to start. For example, you can segment your email-marketing list so that your email promotions for the product go to customers who have purchased it at least two times within the past six months. If you see a positive response, you may consider promoting the product to potential customers, especially if you've created a new use or added new features.

Step 4

Stop manufacturing the product if sales continue to plummet. Discontinue it and let the current inventory run down to zero. You may decide to offer a sales promotion to move the product more quickly, such as a buy-one, get-one-free offer or 20 percent off purchases.

Step 5

Identify companies who sell complementary or competing products, as they may have a similar target market, the marketing dollars to develop and promote the product or the research capabilities to make changes to it. You can sell your inventory to that company.

About the Author

Miranda Brookins is a marketing professional who has over seven years of experience in copywriting, direct-response and Web marketing, publications management and business communications. She has a bachelor's degree in business and marketing from Towson University and is working on a master's degree in publications design at University of Baltimore.

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